USDG Backing Assets
How USDG maintains its 1:1 peg
Besides maintaining a hard 1:1 peg, the actual cash reserves are deployed to limit storage liability yet maintain high liquidity. Gypsy's holdings can be seen in real-time on the explorer page on gypsytoken.org. Gypsy will post monthly documents going over holdings
Asset breakdowns are as follows:
Cash & Cash Equivalent & Commercial Paper
90%
Corporate Bonds & Funds & Precious Metals
4.5%
Secured Loans (none to affiliated entities)
5.5%
Cash & Cash Equivalent & Commercial Paper breakdown:
U.S. Treasury Bills
55%
Commercial Paper & Certificate of Deposits
29%
Money Market Funds
9.8%
Cash & Bank Deposits
5.8%
Non-U.S. Treasury Bills
0.4%
Reverse Repurchase Agreement
1%
How does $USDG manage its backing holdings?
Gypsy holds all cash deposited throughout the day and makes a purchase of non-cash assets at 12 pm EST every day. If there is a large withdrawal from USDG holders, then Gypsy will automatically begin selling non-cash assets for cash to always maintain liquidity.
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